Verizon boasts a substantial customer base.
By offering discounts and deals, Verizon managed to attract a plethora of new clients. Yet, the corporation failed to meet its targets in terms of consolidated revenue, mirroring the performance from the preceding quarter. As a result, Verizon's shares saw a dip of nearly two percent in pre-market trading on Wall Street.
The telecom giant reportedly added around 239,000 new mobile contract subscribers over the past few months. This number surpassed the anticipated figure by approximately 20,000 and nearly doubled the second quarter's count. The company attributed this growth to its "myPlan" initiative, under which customers only pay for the services they consume. Additional perks include discounted access to streaming services like Netflix and Disney+.
Previously this year, Verizon increased the prices of certain offers to persuade customers to opt for "myPlan."
The company's consolidated revenue for the period amounted to $33.3 billion. Analysts had anticipated revenue of around $100 million more. The uncertain economic situation has led consumers to be cautious when upgrading their mobile devices. Even the emergence of new AI technologies has yet to deliver the anticipated boost.
Despite the price increases for certain offers, the popularity of Verizon's "myPlan" initiative continued to grow, leading to an impressive number of new mobile contract subscribers. However, despite this success in customer acquisition, Verizon still fell short of its consolidated revenue targets, with analysts expecting higher earnings due to the economic uncertainties and the slow adoption of new AI technologies.
